Carrier 1: Behind the Scenes in Europe
But before there can be a thriving Net market in Europe, there must be a strong infrastructure. One of the leaders is Carrier 1 International (CONE) . The company went public in late February (led by Morgan Stanley). However, unlike other IPOs, this one did not skyrocket. The high was $35 and the stock is now trading at $27.
In essence, the company is a provider of voice, Net and bandwidth services. Carrier 1, though, does not sell services to consumers; rather, it sells them to telecom providers (such as Internet service providers). In fact, telecom providers like purchasing services from a company such as Carrier 1 because it is not a direct competitor.
Carrier 1 is not a reseller of network bandwidth; rather, the company is building-out its own fiber optic network. By owning the network, the company has more control over quality, service offerings and cost.
So far, Carrier 1 provides its services in 17 cities and 11 countries. Of course, the company is continuing to expand. Through the next year, Carrier 1 plans to add 9,000 kilometers to the network.
What is amazing is that the company is only a few years old. Then again, Carrier 1 has a top management team, with many years experience in the European telecom market.
Inevitably, the need for bandwidth will explode in Europe. There was about 10% penetration of Web users in 1998. This is expected to surge to 45% in 2003. This means Europe will demand sophisticated networks to carry the data. And Carrier 1 will be there to reap the benefits.
Carrier 1, a good investment? Discuss it here
Subscribe to internet.com's HotWatch, a monthly e-mail newsletter featuring Internet Stock Report's top 10 noteworthy Internet stocks for the month. Each month you will receive in-depth analysis on the top 10 Internet stocks to watch with the information you need to assess the fast-paced nature of Internet stocks. Staying on top of market changes in the Internet Stock market is what counts. You receive 12 timely issues sent to you by e-mail. Don't wait, our next issue will be out before you know it with a whole new perspective on the market. Sign up today at: e-newsletters.
